Macroeconomics Answers

Using the following data($ billions) for a given year and assuming that GDP equals GNP,calculate (a) gross domestic product (b) national income (c) net national income (d) indirect business taxes.

1.consumption spending = $8000

2.interest income = 500

3.rental income = 200

4.investment spending = 2,500

5.profits = 2,000

6.wages salaries = $ 7000

7.depreciation =1550

8.government spending =2000

9.net export spending = -450

Suppose the South African government has just issued treasury bills worth R50 million through the South African bond exchange market. This scenario is concerned with

a. 

indirect financing of a real transaction.

a. indirect financing of a real transaction.

b. 

direct financing of a financial transaction.

b. direct financing of a financial transaction.

c. 

indirect financing of a financial transaction.

c. indirect financing of a financial transaction.

d. 

direct financing of a real transaction.

Which of the following would be classed as a monetary policy?

a. 

A decrease or increase in the quantity of money.

a. A decrease or increase in the quantity of money.

b. 

An increase in government spending.

b. An increase in government spending.

c. 

An increase in the demand for loans.

c. An increase in the demand for loans.

d. 

An increase or decrease in the interest rate.

Which of the following statements is/are incorrect in explaining the tax being treated as leakage in the circular flow of income between household and firms?

a) Tax is the part of income that is received by households but then paid to government.

b) Tax is taken out of the circular flow of income.

c) Households can spend it on goods and services.

d) Tax is an amount that is withdrawn or leaked from the circular flow of income.

a. 

b only

a. b only

b. 

a, b and c

b. a, b and c

c. 

b and c

c. b and c

d. 

c only

d. c only

e. 

b, c and d

Suppose you are given the following information about some hypothetical economy and its national income accounts. Use this information to answer the questions that follow. (Amounts are in billions of dollars)

Indirect Business Taxes

$198

Corporate profits

$251

Corporate profits taxes

$96

Retained earnings

$74

Proprietors' income

$123

Rents and interest earned

$148

Exports

$157

Imports

$224

Income Earned from rest of world by US citizens

$219

Income Earned by rest of world in US

$219

Net Domestic Product

$2151

Government expenditures

$483

Transfer Payments

$510

Social Security Taxes (employee & employer)

$370

Consumption expenditures

$1505

Gross Investment

$470

Disposable personal income

$1673

Required;

                   gdp

Explain both the meaning of economic growth and why it is considered to be an important objective for government. 

Apply relevant economic analysis to evaluate why it is argued that relying on economic growth itself is not a useful way of measuring real progress in advancing the well-being of society.

Consumer firm and government benefits, Advantages and disadvantages of economic growth

Explain both the meaning of economic growth and why it is considered to be an important objective for government. 

Apply relevant economic analysis to evaluate why it is argued that relying on economic growth itself is not a useful way of measuring real progress in advancing the well-being of society.

Does the trade between the United States and Brazil and Argentina follow the prediction of the gravity model? Discuss on the basis of trade figures and their determinants.

What do patent,economies of scale and franchise have in common

Question

If I offered a job to someone to clean my house at $1 per hour, and unemployed people chose not to take the job, should they be classed as ‘voluntarily' unemployed?